Dáil Éireann Debate, Thursday - 16 September 2021
131. Deputy Duncan Smith asked the Minister for Transport if he will commit to a study of the benefits of free public transport in his Department such as have taken place in Estonia and Luxembourg; and if he will make a statement on the matter. [43939/21]
Amharc ar fhreagraAs Minister for Transport I have responsibility for policy and overall funding in relation to public transport.
The National Transport Authority (NTA) has the statutory responsibility for the regulation of fares in relation to public passenger transport services and also has statutory responsibility for securing the provision of public transport services by way of public transport services contracts in respect of services that are socially necessary but commercially unviable. The funding of those services comprises both the fares paid by passengers and the subvention payments from the Exchequer. The main purpose of the subvention payment is to meet the gap between income from fares and the cost of operating services.
The provision of public transport services nationally is heavily dependent on passenger fare revenue as it normally contributes about 65% of the operational cost. The remaining 35% of cost is covered by the PSO grant and the Department of Social Protection grant under the Free Travel Scheme. In Budget 2020, and prior to the Covid-19 pandemic, a total of €304 million was provided for PSO and Local Link rural regular services. Due to the impact of Covid-19, which resulted in the collapse of fare revenue on public transport, a further €370 million was allocated to enable the continued operation of public transport services in 2020. My primary focus is to ensure that public transport services continue to operate during this pandemic and I secured almost €659m for PSO services in 2021, of which €30m is to support the licensed bus sector.
In addition, the cost of providing the additional fleet, depots, drivers, etc. to meet the likely resultant substantial increase in passenger numbers if fares were reduced or eliminated would also have to be factored in. Introducing free public transport for all users would require substantial additional funding by the taxpayer or from other sources.
Any assessment of a proposed change to public transport fare structures would be a matter for the NTA to consider in the first instance. I have therefore forwarded the Deputy's question to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
